It is not uncommon for brokers to monitor the property databases for properties that have failed to sell and begin marketing their services to the unsuccessful property owner. Obviously, an expired listing indicates that the listing agreement has concluded due to passage of time. A withdrawn listing is not as clear. Properties are withdrawn for a multitude of reasons. The owner may want to take the property off the market to make repairs or to refinance the mortgage loan. The owner may decide that he doesn’t want to sell right now. If your business model includes marketing your services to withdrawn listings, the first question you should be asking the owner is whether they have an unexpired written contract that grants an exclusive right to sell or lease to another broker, or it grants an exclusive agency right to sell or lease. If the answer is yes, then you should terminate your conversation, hopefully courteously, with the seller. Commission Rule E-13 prohibits a broker from negotiating the sale, exchange, lease or listing contract of real property directly with an owner when the broker knows that the owner has an unexpired written contract that is exclusive to another broker or brokerage. Additionally, Commission Rule E-13 does not allow a broker to initiate a conversation with an owner for the future sale, exchange, lease or listing of real property if there is an unexpired and exclusive written contract. If a broker initiates the conversation, the broker is in violation of Commission Rule E-13, also known as the sign-crossing rule.
Marcia Waters has been with the Colorado Division of Real Estate since August 2005. Marcia started with the Division as a Criminal Investigator for the Real Estate Commission and was promoted to Chief Investigator in 2006. In 2007, she was promoted to the position of Investigations and Compliance Director. In that capacity, she managed the investigatory and settlement programs for the Division. On October 15, 2010, she was promoted to the position of Division Director. The Division of Real Estate licenses and regulates approximately 50,000 real estate professionals. Ms. Waters serves as the administrator for the Real Estate Commission, the Board of Real Estate Appraisers, the Board of Mortgage Loan Originators, the Community Association Manager Program and the HOA Information and Resource Center. Ms. Waters manages the Division’s $6.5 million budget, oversees a staff of approximately 57 full-time employees, and establishes the direction of Division programs based on market and industry trends.